Govt puts a limit of Rs 5000 on last minute deposit of old currencies of Rs 500 & Rs 1000

New Delhi, Dec 19 (KNN) Tightening the norms to check black money in the country, RBI has put a cap of Rs 5000 for deposits of old currency notes of Rs 500 and Rs 1000 along with an explanatory note on the reason for late deposit.

The Reserve Bank of India today said that any person who continues to hold old notes of 500 and 1000 rupees in bulk will get only one more chance to deposit them into bank accounts and will also have to provide an explanation for the delayed deposit.

“Tenders of SBNs in excess of Rs 5000 into a bank account will be received for credit only once during the remaining period till December 30, 2016. The credit in such cases shall be afforded only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation. The explanation should be kept on record to facilitate an audit trail at a later stage,” the RBI said.

The banks have been directed to make an entry into the central database so that the person will not be able to deposit money in any other bank.

“When tenders smaller than Rs  5000 are made in an account and such tenders taken together on cumulative basis exceed Rs 5000 they may be subject to the procedure to be followed in case of tenders above,” it added.

RBI also added that the full value of tenders of old notes in excess of Rs 5000 shall be credited to accounts that are fully compliant with know-your-customer norms and if the accounts are not KYC compliant credits may be restricted up to Rs 50,000.

As before, agents and others will be authorized to deposit money into other people’s accounts, provided they have documentary proof that they are acting on the latter’s behalf.

“Bank notes tendered may be credited to a third party account, provided specific authorisation therefor accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually tendering,” RBI added.